Engineering business loans: Lenders for aerospace & automotive engineering

Quick summary: Yes — UK Business Loans connects engineering firms in aerospace and automotive sectors with specialist lenders and brokers. We match businesses (loans from around £10,000 upward) to providers experienced in machinery and asset finance, invoice & contract financing, R&D funding and export/trade finance. Completing our short enquiry is free, does not affect your credit score and helps us match you to the right partners quickly. Get Quote Now — Free Eligibility Check

Quick answer: Do you have specialist lenders?

Yes. UK Business Loans works with a broad panel of specialist lenders and broker partners who understand the unique cashflow, asset and contract challenges of aerospace and automotive engineering businesses. We introduce you to lenders experienced in machinery finance, long lead-time contracts, certification-related costs (eg. AS9100), and export-related funding. We are an introducer — we don’t lend — and our role is to match you to the most suitable lenders and brokers. Free Eligibility Check

Types of lenders we match engineering firms with

Engineering and manufacturing projects require specialised finance expertise. We match you to the right lender type depending on your need:

Specialist asset & equipment finance companies

Providers that finance CNCs, test rigs, jigs, tooling and specialised production lines with hire purchase or finance leases tailored to machinery life-cycles.

Leasing & hire purchase providers

Leasing and HP spread the cost of equipment and can preserve cashflow while giving access to new technology.

Invoice finance & factoring providers

Bridge long payment terms between primes/OEMs and your business so you can mobilise contracts faster.

Commercial banks and challenger lenders

Term loans, secured facilities and working capital lines for established firms with proven trading history and security.

Alternative & development finance

Mezzanine finance, bridging and venture debt for growth projects, facility expansion or when traditional lenders aren’t a perfect fit.

Export finance & trade lenders

Support for overseas contracts, performance bonds, and currency or purchaser risk.

R&D finance & tax credit specialist funders

Providers who understand R&D claims, innovation funding and can provide working capital against grant or tax credit cycles.

Broker partners specialising in engineering

Experienced brokers who structure deals across several lenders to find competitive terms aligned with engineering timelines.

Get Started — Free Eligibility Check

Common funding uses in aerospace & automotive engineering

• Machinery purchase (CNC cells, milling, EDM)
• Tooling, jigs and fixtures
• Prototype development and testing rigs
• R&D, certification and compliance costs (e.g. AS9100 audits)
• Supplier onboarding and mobilisation for OEM contracts
• Working capital to cover long lead-time contracts
• Export finance or performance bond support
• Facility expansion and fit-out

Specialist lenders understand milestone-based payments, long acceptance periods and the importance of certification-driven revenue. If you want more detail on sector-specific solutions, see our engineering business loans overview.

engineering business loans

Typical finance products

Here are the most commonly used products by aerospace and automotive engineering firms:

• Asset finance — hire purchase or finance leases for machinery and production equipment.
• Equipment leasing — operational leases where the lender retains ownership.
• Invoice discounting & factoring — turn unpaid invoices into immediate cash.
• Term loans & secured loans — for larger capex or facility purchases.
• Contract / receivables financing — funding against progress claims or staged payments.
• Overdrafts & working capital — flexible short-term facilities to smooth cashflow.
• Development / bridging / mezzanine finance — for growth projects or timing gaps.
• Government-backed & green funding — where applicable for innovation or sustainability projects.

Learn more about asset funding and invoice finance via our linked industry pages: Asset finance and Invoice finance.

What specialist lenders look for

To secure the best terms, lenders typically assess the following:

• Turnover & profitability — or orderbook strength demonstrating revenue visibility.
• Contract profile — long-term contracts or subcontracts to established primes (OEMs).
• Certifications & standards — AS9100, ISO and sector credentials that reduce supplier risk.
• Asset quality — type, age and condition of machinery for asset-backed deals.
• Client concentration & export pipeline — diversified client base or secured export contracts.
• Management & technical capability — experienced directors and management team.
• Security available — charges, guarantees or collateral where appropriate.
• Clear project schedules — milestones and acceptance criteria for contract finance.

Mini checklist to prepare: recent accounts, management CVs, order confirmations or POs, supplier/asset quotes and recent invoices (for factoring). Get matched with specialist lenders

Example case studies

Case study A — Automotive supplier: Buying CNC cells

Challenge: Rapidly growing Tier 2 supplier awarded a £1.2m contract but needed new CNC capacity without draining working capital.

Solution: Matched to an asset finance provider offering a 5-year hire purchase with staged delivery finance aligned to the contract milestones.

Outcome: New production line installed, cashflow preserved, and the supplier met OEM delivery dates — enabling further contract wins.

Case study B — Aerospace subcontractor: Bridging long payment terms

Challenge: Subcontractor manufacturing critical components faced 90–120 day payment terms from a prime contractor and needed liquidity to purchase expensive alloys.

Solution: Introduced to an invoice finance partner that provided invoice discounting and advance rates on certified progress claims.

Outcome: Cashflow stabilised, production schedules met, and the business secured additional capacity to grow revenue.

Our Business Finance Matching Process

Step 1

Complete Your Details

It takes just 1 minute on average to complete your business and contact details.

Step 2

We Match Your Business

With the best business finance broker or lender most suitable for your needs.

Step 3

You Get Free Quote + Advice

You receive a free quote along with complimentary expert financial advice.

It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.

Get a bespoke quote for your project

Typical terms, rates & timelines

Indicative ranges only — actual terms vary by lender and by business profile (subject to credit checks):

• Asset finance: indicative effective rates commonly in the range 3–12% APR depending on asset, deposit and term.
• Invoice finance: typical fees around 0.5–3% of invoice value per month — varies with risk and advance rates.
• Term loans: margins vary strongly by term, security and sector risk.
• Timeline: initial match → lender contact usually within hours; simple deals can be decided in days; complex project/contract finance often 2–8 weeks.

For accurate pricing and timelines tailored to your business, complete a short enquiry. Free Eligibility Check — Get Quote Now

How UK Business Loans helps

Our goal is to save you time and raise your chance of finding the right deal. Typical process:

1. Complete a short enquiry form (takes a few minutes).
2. We match your request to lenders and brokers experienced in aerospace & automotive engineering.
3. Approved partners contact you to discuss options and deliver quotes.
4. Compare offers, choose the provider that fits and proceed directly with them.

Benefits: free to use, no-obligation, usually a rapid response and nationwide coverage. We are an introducer — not a lender — so lenders/brokers we introduce will supply full terms and carry out their own checks. Completing our enquiry does not affect your credit score. Start Your Enquiry — Free Eligibility Check

Eligibility checklist & documents to have ready

• Company name and registration number
• Latest management accounts and historic accounts
• Details of turnover and orderbook
• Contracts, purchase orders or pipeline evidence
• Quotes for equipment or supplier invoices (for asset finance)
• Recent invoices/ledger (for invoice finance)
• Director ID & address verification (where requested by lenders)

Initial enquiries usually take minutes; detailed due diligence is requested only when proceeding with a lender.

How to improve your chance of approval

• Consolidate and present clear contract/order evidence.
• Separate personal and business finances and present clean accounts.
• Obtain client POs or milestone schedules to show predictable cashflow.
• Consider a modest initial facility to build a lending relationship.

Get matched with lenders who understand engineering

Frequently asked questions

Do you have lenders with experience in aerospace and automotive engineering financing?

Yes. Our panel includes lenders and broker partners that specialise in the engineering sector and understand OEM relationships, certification cycles and long payment terms. Complete our short enquiry for a free eligibility check and matching.

What types of finance are best for machine purchases?

Asset finance (hire purchase or finance lease) is typically best for machine purchases because it spreads cost, preserves cashflow and matches payments to asset life.

Can early-stage engineering firms get finance?

Some specialist lenders and brokers will work with early-stage engineering firms, particularly where there are confirmed contracts, strong management teams or valuable assets to secure funding.

Will applying affect our credit score?

No. Completing UK Business Loans’ enquiry form does not affect your credit score. Lenders or brokers may perform credit checks later if you proceed with an application.

How quickly will lenders contact us?

Usually within hours during working days. Simpler enquiries can receive offers in days; complex project finance and R&D or grant-backed funding can take several weeks.

Get Quote Now — Free Eligibility Check

Conclusion & next steps

Specialist lenders for aerospace and automotive engineering are available. UK Business Loans will match your business to lenders and brokers who understand your sector, equipment and contract cycles. Complete our short enquiry now for a free, no-obligation eligibility check — most enquiries receive a response within hours. Start Your Enquiry — Free, No Obligation

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Legal & compliance: UK Business Loans is an introducer and does not lend money or provide regulated financial advice. We connect businesses with lenders and brokers who will provide full terms and perform their own checks. Submitting an enquiry does not affect your credit score. Indicative rates and timelines shown on this page are for guidance only — final terms depend on lender assessment and credit checks. For full details see our Privacy Policy and Terms.

1) What types of engineering business loans are available for aerospace and automotive firms?
Asset finance (hire purchase/finance lease), equipment leasing, invoice finance/factoring, contract/receivables finance, term loans, development/mezzanine debt, R&D funding and export/trade finance are all commonly used by aerospace and automotive engineering businesses.

2) Is UK Business Loans a lender and will submitting an enquiry affect our credit score?
UK Business Loans is an introducer (not a lender); completing our short enquiry is not an application and does not affect your credit score, though lenders may carry out checks later if you proceed.

3) What finance is best for buying CNC machines and tooling?
Asset finance—typically hire purchase or finance lease—is usually best for CNCs and tooling because it spreads cost, preserves cashflow and can match payments to the asset lifecycle.

4) Can start-ups or early-stage engineering firms get finance?
Yes—specialist lenders and brokers in our network will consider early-stage engineering firms where there are strong contracts, credible management teams or valuable assets/security.

5) What loan amounts can I apply for through UK Business Loans?
Our partners handle facilities from around £10,000 up to multi‑million deals, depending on the lender and your business profile.

6) How quickly will lenders contact us after submitting an enquiry?
Typically matched lenders or brokers contact you within hours on working days; simple deals can be decided in days while complex contract or R&D finance may take 2–8 weeks.

7) What documents should I have ready for an engineering loan or invoice finance application?
Prepare company details and registration, recent management/historic accounts, turnover/orderbook evidence, contracts/POs, supplier/asset quotes, recent invoices/ledger and director ID/address verification where required.

8) What are typical rates and timelines for asset finance and invoice finance?
Indicative ranges are asset finance at around 3–12% APR depending on asset and term, invoice finance fees typically 0.5–3% of invoice value per month, and timelines from days for simple deals to several weeks for complex funding.

9) Can invoice finance help aerospace and automotive suppliers with long OEM payment terms?
Yes—invoice discounting or factoring converts long 60–120+ day OEM invoices or certified progress claims into immediate cash to stabilise production and working capital.

10) How can we improve our chances of approval for engineering business loans?
Improve approval odds by presenting clear contract/order evidence and POs, keeping clean and separate business accounts, demonstrating experienced management and sector certifications (eg. AS9100/ISO), and considering a modest initial facility to build lender confidence.